Biz sector calls for scrapping of surcharge regs

Citing the power rate adjustment’s likely adverse impact on business costs, the private sector is pleading with Gov. Juan N. Babauta to not sign the fuel surcharge regulations which the Commonwealth Utilities Corp. approved yesterday.

Adopted on an emergency basis, the regulations need only the governor’s concurrence in order to become effective for a period of 120 days.

“I hope the governor sees the fuel surcharge for what it is: an outcome of the lack of planning on the part of CUC. I hope he does not sign it, and instead asks CUC to go back to the table and focus on the many other options available to them,” said Saipan Chamber of Commerce president Alex Sablan. “Not having cash in the bank is not enough reason to impose a fuel surcharge.”

Sablan added that the implementation of the surcharge was “not an inevitable solution” to CUC’s financial troubles.

“We’re very discouraged. We don’t think CUC needs the surcharge. What they need to do is to run the utility company like any business and devise long-term and short-term plans,” he added.

He also raised concern about CUC’s failure to inform the public of its Tuesday meeting ahead of time. No notice of the meeting was issued until yesterday morning.

“Less than a week ago, we were told that the fuel surcharge is ‘a dead issue.’ Now, it’s approved,” he said.

The Hotel Association of the Northern Mariana Islands also expressed disappointment over the decision of the CUC board of directors on the fuel surcharge.

HANMI president Lynn Knight said she doubts that the fuel surcharge was the right and only available move for CUC, given the various ideas and suggestions that have been laid out to the utility firm over the past months.

“I just wish that CUC would look at other ways they could cut their costs of operating and run more efficiently,” Knight said.

She also cited the impact that the fuel surcharge will have on the business community, as well as the consumers.

“The business community has gone through so much belt tightening over the last few years. Our costs of doing business here are already very high. One and a half cents does not sound like a lot. But if you’re a big consumer of power, it really adds up fast. It’s very likely that some business who cannot afford the increase or who are operating on a slim margin now may have to pass along the cost to customers,” Knight said.